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How Lanke uses this technology to expand LCE productionMon, 21 Jan 2019 08:43:28 -0800http://www.inproved.com/blog/lanke
http://www.inproved.com/blog/lanke<p>Most salt-lake brines in China are of the magnesium sulfate subtype and the ratio of Mg/Li can be as high as 500. The chemical precipitation approach that has been successfully applied to low calcium and magnesium brines (such as those from Zabuye and Jezecaka Lake) consumes a large quantity of chemicals and generates a huge amount of solid waste.</p><p>In addition, lithium loss due to co-precipitation and adsorption to calcium/magnesium precipitate is also significant. The technologies to extract lithium from brine with a high Mg/Li ratio include calcination, adsorption, extraction and membrane separation. These technologies have been explored for potential large-scale production. Some of these technologies have achieved significant progressed over the last few years and one of which is the adsorption method using lithium-ion sieves.</p><p style="font-size: 130%;">Lithium-ion Sieves</p><p>Adsorption using lithium-ion selective sieve was claimed by Lanke Lithium (蓝科), a subsidiary of Qinghai Salt Lakes Holding Co Ltd (SZSE: 000792) to reach commercialisation. Lanke has a project in the Qarhan Salt Lakes with a capacity of 10,000 tons per year, and are due to start commissioning their second plant with a capacity of 20,000 tons per year by mid 2019.</p><p style="font-size: 80%;">source: Researchgate.net</p><p>The lithium-ion sieve is a specific absorbent with a high selectivity for lithium ions. Li–Mn–O ternary oxides have been used to prepare ion sieves for lithium recovery from salt-lake brines because the Li–Mn–O framework can maintain a cubic spinel structure during the Li+ insertion and extraction process. These oxides contain a series of chemicals, such as the spinel manganese oxides, and nanostructure MnO2. Inspired by the lithium ion sieve, titanium lithium ionic and lithium iron phosphate (LiFePO4) sieves have also been investigated. These absorbents have been tested for recovery of lithium from brine from Qarhan saline lake.</p><p>Challenges for ionic...<a href=http://www.inproved.com/blog/lanke>Read More</a>Pedal to the Metal, Lithium Demand in the Fast LaneSun, 21 Oct 2018 05:26:08 -0700http://www.inproved.com/blog/lithium-demand-rise
http://www.inproved.com/blog/lithium-demand-rise<p>The market for lithium is rapidly growing as politicians around the world are beginning to mandate a migration away from internal combustion vehicles. There is currently no way for investors to directly capitalise on this trend as there is no commodities market for lithium. A lithium producer will be better off capitalising on the rapid growth of lithium consumption ad increase production volumes rather than raise funds on an implied valuation of those production volumes.</p><p>Burgeoning demand presents a tremendous opportunity for the lithium market. Luckily we find ourselves in the beginning of an industrial revolution, driven by adaption of industrial 4.0 and electric vehicles, which has not left the mining and processing world behind. In the 16 years that I have been working in this industry, I've never seen as much pent-up demand for minerals such as lithium as we have today. The torrent of new innovations in battery technology can be grouped into three primary categories: Victors, Victims and Survivors, along with advances in processing and refining technologies and a better understanding of challenges in the entire supply value chain. Today, lithium projects are making progress that wasn't economically feasible a few years ago as we are beginning to better understand how the lithium metal is affecting many clean energy initiatives promoted by various governments today and beyond. We are starting to bring online many projects that help governments realise these clean energy initiatives - all of which will have a significant near-term implications on quality supply of the lithium metal. The list of fast-moving developments in Lithium processing and refining is long and growing.</p><p>To take advantage of this boon requires a large amount of information, resources and personnel upon which good mining and good investment decisions can be made. While mining and processing data is beginning to flood in with the advent of new projects becoming more advanced,...<a href=http://www.inproved.com/blog/lithium-demand-rise>Read More</a>How to win in the Electric Vehicle Battery MarketSun, 23 Sep 2018 01:35:01 -0700http://www.inproved.com/blog/how-to-win-battery-market
http://www.inproved.com/blog/how-to-win-battery-market<p>source: LEK</p><p>The global trend toward electric vehicles is taking place in China’s auto industry. Strong policy support and continual technical advances are the key drivers. For example, the U.S. government incentivises EV purchases by providing a tax credit of up to $7,500. China has also set ambitious targets and introduced subsidy policies for new-energy vehicles, making China the world’s fastest-growing EV market.</p><p>The prospect of continued rapid growth in EV sales is beyond doubt. However, with changing subsidy policies and maturity of the market, competition will become increasingly intense. The American government is considering cutting the tax credit mentioned above, and that will have a significant impact on the EV market. In China, data shows that China’s overall subsidy on new energy vehicles in 2017 has dropped by 40% as compared with 2016, although EVs with high energy density and long battery life continue to receive support from the government. China will stop subsidizing pure EVs with battery life below 150 km but increase subsidies for models with longer battery life.</p><p>Under the policy changes, the fast-growing EV battery market is facing increasing challenges. Entry barriers are becoming higher and the market is consolidating. The number of EV battery manufacturers in China dropped from about 150 in 2016 to fewer than 100 in 2017.</p><p>So, what are the key success factors?</p> 1. Investing in technologies: Follow the development of next-gen technologies <p>NiCoMn/ NiCoAl (NCM/NCA) batteries enjoy advantages in energy density and are catching up in cost.</p><p><strong>Energy density</strong>: In China, policy guidelines require that the energy density of a passenger vehicle battery needs to reach 300Wh/kg by 2020 and 500Wh/kg by 2030. NCM/NCA batteries will be the only ones that can achieve this level of energy density.</p><p><strong>Manufacturing cost</strong>: Increasing battery production brings economy of scale, with the...<a href=http://www.inproved.com/blog/how-to-win-battery-market>Read More</a>India proposes a goal of 15% Electric Vehicles in Five YearsSun, 23 Sep 2018 00:42:51 -0700http://www.inproved.com/blog/india-proposes-electric-vehicles
http://www.inproved.com/blog/india-proposes-electric-vehicles<p>source: Bloomberg</p><p>India reported in September 2018 that it aims to have at least 15 percent of the vehicles on its roads to be electric in five years, signalling the government’s wish to join a long list of countries around the world that are already seeking to cut fossil fuels aggressively.</p><p>“If at least 15 percent comes in the next five years, it will be useful for the country,” Transport Minister Nitin Gadkari said Thursday at a conference organized by the Society of Indian Automobile Manufacturers in New Delhi. “This is a time for the country to think seriously about pollution.”</p><p>India has been a laggard in the global race toward electrification of automobiles, with no clear guiding policy unlike China, which has offered hefty subsidies and incentives to promote battery-powered cars in its efforts to reduce dependence on oil imports. Prime Minister Narendra Modi’s administration had earlier expressed ambitions of achieving a target of 30 percent EVs by 2030.</p><p>While cumulative global sales of passenger electric vehicles likely surpassed 4 million last week, with China accounting for more than a third since 2011, India sold an estimated 2,000 EVs last year. EVs may account for about <a title="Long-Term Electric Vehicle Outlook 2018" target="_blank" href="https://www.bloomberg.com/news/terminal/P92UOL6TTDS4">7 percent</a> of sales in India by 2030, according to Bloomberg NEF.</p><p>In contrast, China is targeting sales of 7 million new-energy vehicles by 2025, which may account for 15 percent of the vehicle market by then, according to China Association of Automobile Manufacturers. The Asian giant has offered as much as $7,000 in incentives for an EV with a range of 400 kilometers (249 miles) and above, making the automobile more affordable to customers.</p><p>A slew of carmakers including the local units of Hyundai Motor Co. and Suzuki Motor Corp. have announced plans to introduce electric vehicles to the South Asian country as early as...<a href=http://www.inproved.com/blog/india-proposes-electric-vehicles>Read More</a>A story about Vertical IntegrationSat, 08 Sep 2018 01:24:01 -0700http://www.inproved.com/blog/story-vertical-integration
http://www.inproved.com/blog/story-vertical-integration<p>As a business technique, vertical integration first emerged in the 19th century. It was a term coined by Andrew Carnegie to describe the structure of his company, U.S. Steel. He had purchased almost every aspect of the supply and distribution chain his company relied on. The primary reason for this was to ensure consistent delivery of materials and distribution and an overall lower cost of doing business. These motives remain attractive to companies embarking on vertical integration today, and one of the primary reasons a company will vertically integrate with a supplier is to manage transaction costs.</p><p style="font-size: 130%;">Does it make any sense for the Electric vehicle manufacturer?</p><p>It may. Tesla's move to an environmentally sustainable, secure source is seen as a win-win for the industry and for investors. However they were driven because of supplier problems, and have spent a fortune on integration. Time will tell if its a good bet for them.</p><p>What we have learnt from dealing with Asians is that they have spent considerably less on vertical integration and have got back much more. China especially has built a complete value chain with a high percentage of locally produced components being incorporated into foreign cars produced in China.</p><p>Only time will tell if it’s a good bet. GM, when they designed the Bolt EV, elected to outsource the battery and drivetrain to LG. Clearly they think that’s the right decision at this time.</p><p style="font-size: 130%;">The Vertical integration Story of BYD</p><p>BYD Co Ltd is a Chinese manufacturer of automobiles, battery-powered bicycles, buses, forklifts, rechargeable batteries, trucks etc with its corporate headquarters in Shenzhen. It has two major subsidiaries, BYD Automobile and BYD Electronic and was founded in February 1995.</p><p>BYD has grown to become a major manufacturer of automobiles, battery-powered bicycles, buses, truck, forklift, rechargeable batteries, most notably mobile-phone...<a href=http://www.inproved.com/blog/story-vertical-integration>Read More</a>InProved launches US$150m Electric Vehicle fundSun, 12 Aug 2018 09:15:45 -0700http://www.inproved.com/blog/inproved-launches-us150m-electric-vehicles-fund
http://www.inproved.com/blog/inproved-launches-us150m-electric-vehicles-fund<p>InProved Pte Ltd, a Singapore-based boutique investment firm that has invested in junior miners in Australia and Canada, has built world-class mining projects such as the Al Jalamid Phosphate concentrate processing plant and Ras Al Khair chemical and fertiliser complex, is launching a US$150 million fund that will invest in the manufacturing of Electrode materials used to make Electric Vehicle batteries. The fund is targeted to closed "by Q1 next year", and will be the first of 3 funds that will invest in the vertical and horizontal chains contributing to manufacture of Electric Vehicles.</p><p>Electric Vehicle Fund (EVF) is a partnership between Wengfu Group and InProved Pte Ltd, founded by Huan Johnson Koh, a Qualified Persons (QP), AusIMM member who is also the Singapore representative of the Australasian Institute of Mining and Metallurgy.</p><p>Mr Koh said: "We view mining and processing as the foundation for raw materials to be supplied to be used to make the Lithium-ion batteries installed in Electric Vehicles. Electric Vehicles is on par to take an even larger share of the automotive industry, with the possibility to replace internal combustion engines vehicles this century."</p><p>"Right now, China is leading the way to produce Electric Vehicles, which require "minor metals" such as lithium and cobalt to be used to make the cathode component of the batteries installed in EVs. We see opportunities in mining and processing of these key minerals, to turn them from reserves into pure metals."</p><p>"With our technology partner, the Wengfu Group, one of the largest phosphate concentrate producers in China, with the research and development capabilities in flotation, purification and recycling, to separate non-essential minerals and remove impurities from the ore, we intend to enter the mineral processing industry to install processing plants at locations around the world."</p><p>InProved is already experienced at deploying funds to be used towards...<a href=http://www.inproved.com/blog/inproved-launches-us150m-electric-vehicles-fund>Read More</a>Integrated supply chain for battery manufacturersSat, 11 Aug 2018 05:41:51 -0700http://www.inproved.com/blog/integrated-supply-solution
http://www.inproved.com/blog/integrated-supply-solution<p>Summary</p><ul><li>Vertical integration for supply of raw materials contributing to battery cathodes supports an environment of increasing competition.</li><li>Cathode material producers require long-term supply contracts for raw materials such as Lithium, Cobalt and Nickel.</li><li>Electrolytic Refineries constantly require higher of utilisation rates. </li><li>Processing companies have the technical capabilities to bridge the product gap.</li><li>Exploration companies are in the best position to validate resources and reserves.</li></ul><p style="font-size: 130%;">Recent prices drop to pull in demand</p><p>Lithium stocks have been dropping in value as more plans to increase supply and forecast drops in seaborne spot prices for the commodity cause a wave of uncertainty. China’s domestic spot battery-grade lithium carbonate prices also remain under downward pressure, with fewer suppliers making higher offers.</p><p>Despite, both lithium carbonate and lithium hydroxide demand are forecasted to increase significantly compared to other lithium compounds used mainly in industrial applications. According to Roskill, lithium hydroxide demand in particular is predicted to grow from the actual 25,800 t LCE in 2016 to over 1.6 Mt LCE by 2031, the demand for battery grade hydroxide is to grow at 38.8 % CAGR per year between 2016 and 2031. Lithium carbonate is predicted to grow from the actual 99,200 t LCE in 2016 to over 498,700 t LCE in 2031, the demand for battery grade carbonate os to grow at 13.1 % CAGR per year between 2016 and 2031.</p><p style="font-size: 130%;">Policies in China continue to supports long-term demand</p><p>China this year reported that they will require automakers to comply with a cap-and-trade auto emission rule starting from 2019, the Ministry of Industry and Information Technology announced on Thursday. Car companies with annual sales of more than 30,000 vehicles would have to meet a quota of 10 percent being New Energy Vehicles (NEV's),...<a href=http://www.inproved.com/blog/integrated-supply-solution>Read More</a>News affecting the Lithium-Ion battery marketSat, 21 Jul 2018 23:15:50 -0700http://www.inproved.com/blog/news-lithium-market
http://www.inproved.com/blog/news-lithium-market<p>New policies and access to capital has seen Chinese companies increase the production and marketing of Electric Vehicles during the first half of 2018, pushing the industry into a "new dawn" of battery manufacturing and technology advances, which leads to a global hunt for lithium and cobalt resources.</p><p>The latest statistical data published by the<a target="_blank" href="http://pba.cbea.com/"> PBA</a> (Power Battery Application branch of China) shows that installed capacity on domestic electric vehicles was 4,516MWh (4.52GWh) in May 2018, up 223% from the same year. Amazingly, installed capacity increased quarterly is 22%!</p><p><a target="_blank" href="http://www.inproved.com/equity-raising-platform//#6">Buy-sides in Asia want to speak to listed companies in Canada, Australia and States</a></p><p>“China sees EVs as the way to assert their global dominance in automotive,” says Venkat Viswanathan, an assistant professor of mechanical engineering at Carnegie Mellon, whose work focuses on batteries. “To make it work you need scale, and they do scale better than anyone else.”</p><p>China is already the world's largest electric vehicle maker. With the increase in supply and progress of technology, the cost of NMC batteries is gradually reducing, with safety and reliability improving. Interestingly other battery types have taken a hit, such as Lithium Iron Phosphate. The author has come to know of one major LFP battery manufacturer succumbing to insufficient orders and financial already, when only six months ago they were ranked third in the list of largest battery manufacturers.</p><p>No doubt the leading supplier of of new energy vehicles, the power battery industry chain is facing profound changes. With the progress of technology, the cost of three yuan battery is gradually reduced, and the safety gradually improves, which will impact the lithium iron phosphate battery. In this environment, the company also announced that, due to insufficient orders and...<a href=http://www.inproved.com/blog/news-lithium-market>Read More</a>China's Hanking Holdings completes Gold Acquisition and are on the hunt for moreFri, 13 Jul 2018 19:50:35 -0700http://www.inproved.com/blog/hanking-acquisiton
http://www.inproved.com/blog/hanking-acquisiton<p><a href="https://www.scmp.com/business/investor-relations/stock-quote-profile?s=3788&form_build_id=&form_id=scmp_panels_page_business_stock_quote_form&op=Submit">China Hanking Holdings</a>, the largest privately owned iron ore producer in northeast China, will actively seek opportunities to acquire mines of lithium, cobalt and nickel in Australia, buoyed by Beijing’s effort to promote new-energy vehicles.</p><p>Yang Jiye, chairman and chief executive of China Hanking said that the company’s overseas operations are likely to account for half of its total revenue in 2020 as it actively pursues overseas expansion.</p><p> </p><p>“Apart from mines for precious metal such as gold, we are adamant in making acquisitions of assets related to the development of China’s new-energy vehicle,” he said. “They include lithium, cobalt and nickel.”</p><p> </p><p>The materials are in high demand as they are used in auto parts such as batteries and high-strength alloys.</p><p> </p><p>The chairman said he was unable to give an exact figure for Hanking’s investment plans for the mines, but added that the company will focus its search for assets in markets outside China.</p><p> </p><p>“China is still a resource-short market and the high cost of relocating densely-populated residents to pave a way for mining is another big concern,” Yang said. “We want to focus on overseas markets to expand output and supply.”</p><p> </p><p>The mainland, already the world’s largest new-energy vehicle market, reported sales of 777,000 electric and plug-in hybrid cars in 2017, up 53 per cent from a year earlier.</p><p> </p><p>The number represented 2.7 per cent of the country’s overall vehicle sales last year.</p><p> </p><p>Chinese authorities have set an ambitious target, whereby new-energy vehicles will account for a fifth of total sales by 2025.</p><p>“It is certain that the new-energy vehicle industry will witness stable growth over the next 15 to 20 years given the huge potential,” Yang said. “The...<a href=http://www.inproved.com/blog/hanking-acquisiton>Read More</a>When will the Lithium Bubble Burst?Sun, 08 Jul 2018 00:20:41 -0700http://www.inproved.com/blog/lithium-bubble
http://www.inproved.com/blog/lithium-bubble<p>The past month has seen Tianqi Lithium (002466.SZ) announced a bill, at their shareholder's meeting, to sign on the agreement to purchase 23.77% of SQM, in addition to other M&A bills.</p><p>Lithium demand is not abating yet. Their purchases driven by an anticipated boom in demand for lithium-ion batteries (LiBs) used in electric vehicles (EVs) and in stationary energy storage applications, i.e. in homes, businesses and on utility grids, as well as ongoing growth in demand for battery-powered consumer electronics devices and equipment. Success of such a transaction will further consolidate Tianqi's position among the "Lithium cartel".</p><p>In addition to other Mining companies like Tianqi, Chinese and Japanese battery and automakers, such as CATL fuelled by their recent IPO, has gradually entered big time into the Lithium M/A space.</p><p>The snapping up of mines, both Brine and Hard-rock, has made lithium resources more popular and promoted the rise of lithium spot prices. In turn, the rise of lithium spot prices has increased the enthusiasm of major companies to buy more.</p><p style="font-size: 130%;">Bubble filters to the Stock Market</p><p>Investment adviser Matt Bohlsen <a target="_blank" href="https://seekingalpha.com/article/4109856-lithium-miners-news-month-september-2017?page=2">highlighted</a> in his September 2017 recap of lithium spot and contract prices. “Back then if you were an early follower of mine you could have bought Chile-based SQM for US$19.99, Freeport McMoran for US$38.16, and Albemarle for US$64.50. Now that was great buying! But don’t worry if you have not bought yet, we are still in the first stage of the EV boom with EV market share globally only at ~1%.”</p><p>Bohlsen sees plenty more in the way of gains ahead, and recent developments lend substance to the bullish outlook. The Chinese government’s <a href="http://mynews4.com/news/auto-matters/china-sets-target-for-electric-car-quota-but-delays-rollout">new mandate</a> that EVs...<a href=http://www.inproved.com/blog/lithium-bubble>Read More</a>